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STATE OF NEW YORK
________________________________________________________________________
10316
IN ASSEMBLY
May 22, 2012
___________

Introduced by M. of A. WRIGHT -- (at request of the State Comptroller)
-- read once and referred to the Committee on Labor
AN ACT to amend the workers' compensation law, in relation to the pre-
audit of expenditures from the state insurance fund by the state comp-
troller and to repeal certain provisions of such law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 88 of the workers' compensation law, as amended by
chapter 6 of the laws of 2007, is amended to read as follows:
S 88. Administration expenses. The entire expense of administering the
state insurance fund shall be paid out of such fund WHICH SHALL NOT BE
CONSIDERED AN AGENCY OR A FUND OF THE STATE FOR THE PURPOSES OF SECTION
FOUR OF THE STATE FINANCE LAW. The portion of such expenses applicable
and chargeable to the disability benefits fund [and the medical and
hospital malpractice fund] shall be determined on an equitable basis
with due allowance for the division of overhead expenses. Not later than
the first day of November there shall be submitted to the director of
the budget for his approval an estimated budget of expenditures for the
succeeding calendar year having due regard to the business interests and
contract obligations of the fund. There may not be expended for the
state insurance fund for purposes of administration more than the
amounts specified in such budget for each item of expenditure, except as
authorized by the director of the budget. THERE SHALL BE SUBMITTED TO
THE DIRECTOR OF THE BUDGET QUARTERLY FINANCIAL STATEMENTS ON A CALENDAR
YEAR BASIS. In no case shall the amount of ADMINISTRATIVE expenditures
so authorized for an entire year [for] FROM THE workers' compensation
[insurance] FUND exceed twenty-five per centum of the earned premiums
for such insurance for that year. In no case shall the amount of ADMIN-
ISTRATIVE expenditures authorized for the disability benefits fund for
an entire year exceed twenty-five per centum of the premiums earned by
that fund FOR SUCH INSURANCE FOR THAT YEAR. [In no case shall the amount
of expenditures authorized for the medical and hospital malpractice fund
for an entire year exceed twenty-five per centum of the premiums earned
by that fund.] If there be officers or employees of the department whose

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14101-01-2

A. 10316 2

duties relate partly to the general work of the department and partly to
the work of the state insurance fund, and in case there is other expense
which is incurred jointly on behalf of the general work of the depart-
ment and the state insurance fund, an equitable apportionment of the
expense shall be made and the part thereof which is applicable to the
state insurance fund shall be chargeable thereto. The expenses of the
department of audit and control incurred in connection with the pre-au-
dit of expenditures of the state insurance fund, as required by section
one hundred eleven of the state finance law, shall be a charge against
and be paid out of the moneys of the state insurance fund and there
shall be included in the annual estimate submitted pursuant to this
section an amount sufficient to pay such expenses for the period covered
by such estimate. Notwithstanding section four of the state finance law,
the state comptroller is authorized to process or approve payments
related to business taxes, various workers' compensation board assess-
ments and assessments related to the workers' compensation rating board
directly from the fund's accounts without explicit appropriation author-
ity. The commissioner of labor shall include in his annual report to the
legislature a statement of the commissioners showing the expense of
administering the state fund for the preceding year. All appointments to
positions in the state insurance fund shall be made subject to civil
service requirements.
S 2. Section 88 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, is REPEALED.
S 3. This act shall take effect immediately; provided, however that
section one of this act shall be deemed to have been in full force and
effect on and after April 1, 1996.

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